Motorists could pay more to travel during peak times

By Farrah Tomazin

UpdatedJuly 8, 2016 — 8.48pmfirst published at 3.44pm

Motorists could be forced to pay more to use the roads during peak times in a bid to reduce traffic congestion, under a contentious proposal being examined by the state government's chief infrastructure adviser.

With figures showing that congestion costs about $4.6 billion in Melbourne, Infrastructure Victoria is pushing for a rethink in the way transport is priced, arguing that a new structure is needed to encourage more people to shift to public transport, car pool, or travel when it's less busy.

Congestion on the Calder Freeway in May.Credit:Pat Scala

The idea for a transport network pricing review is one of dozens of options outlined in a 433-page report that will form the basis of a 30-year strategy to be handed to Premier Daniel Andrews at the end of the year.

On the table are a number of suggestions, including variable tolls based on demand (otherwise known as peak-pricing); satellite-enabled tolling (which allows road users to be charged according to the distance travelled) or fixed tolls on particular roads (already used on a number of freeways throughout Melbourne).

"We want to talk about this option with the community in a broader sense – to help people understand that we all pay for transport services in some way, through fuel excises, registration, council rates, public transport fares and as taxpayers. The key question is whether what we pay … helps us make decisions on what transport we use, and how often we use it," Infrastructure Victoria says.

The idea of a new road pricing regime has gained momentum in recent years, with organisations such as the Committee for Economic Development, the RACV, and the Productivity Commission all pushing for reform.

In Victoria, Transurban is currently undertaking a trial of road pricing involving 1200 volunteers and three different user-pays models: a distance-based per-kilometre charge; a one-off charge based on anticipated kilometres; and a price-per-trip charge or access charge.

But overhauling the system is likely to prove challenging for any government, with acting Victorian Roads Minister Jacinta Allan telling Fairfax Media: "The government has consistently ruled out road pricing and we have no plans to change that."

Traffic on Kings Way this week.Credit:Pat Scala

Infrastructure Victoria argues that while parts of the transport network already has user charges, these are not generally targeted at managing demand on our roads. The agency also points out that a new pricing structure would make it easier for people to get to work, lift productivity through more efficient freight, and improve the environment by encouraging people to car pool or shift to public transport.

Last month, a KPMG report called for a trial of different regimes to establish what kind of regime would be best for different cities, pointing out "the technology and policies for effective road pricing schemes have been tested in cities around the world".

Singapore introduced the world's first city-wide electronic road pricing system in 1998, coupled with investment in intelligent transport systems and high-quality bus and metro systems. Two years later, the country reported that morning rush hour traffic had reduced by about 16 per cent.

RACV spokesman Brian Negus said the current pricing regime was "dysfunctional" and ought to be fixed.

"We've long promoted a total review of the current pricing structures to look at a properly structured road user charge. This would be based on mass, distance, location and time of travel," he said.